DIA stuck with its policy of increasing shareholder remuneration in 2015 and did so in two ways: (i) directly, paying out a dividend that was 20% higher year-on-year; and (ii) indirectly, by reducing share capital by 4.16%, automatically increasing each shareholder’s ownership interest in the company.
Continuing its strategy of maintaining a payout in the order of 40%-50% of underlying profit, the company paid out a dividend per share of €0.18 (before withholdings) from 2014 profits on 16 July 2015. This dividend implied a payout (in terms of underlying net profit) of 43.9% and a dividend outlay of around €115 million.
In the wake of this payment, shareholder remuneration since DIA’s IPO in 2001 has totalled €808 million, €497 million of which in the form of cash dividends and €312 million in the form of buyback programmes and subsequent share cancellations.
The company has earmarked over €800 million to shareholder remuneration since it went public in 2011
For 2016, the Board of Directors will submit a motion to pay a dividend of €0.20 per share (before withholdings) from 2015 profits at the upcoming Annual General Meeting, year-on-year growth of 11.1% and representing a payout ratio of 49%.
|DPS (before withholdings)
|Payout (dividend/net profit)
Complementing dividend policy and facilitated by its cash flow generation capabilities, on 10 September, the company reduced its share capital by €2.86 million by cancelling 28.6 million own shares (unit par value: €0.10), equivalent to 4.16% of the total outstanding. Following this transaction, DIA”s share capital stands at €62,245,651.
These shares were cancelled and de-listed following execution of the share buyback programme approved by the Board of Directors on 23 February 2015. The shares were bought back at an average price of €7.0. In total, the company bought back 28.6 million shares for €200 million.